DTN Early Word Livestock Comments 09/27 06:19

DTN Early Word Livestock Comments 09/27 06:19 Follow-Through Selling Anticipated Feeder cattle futures fell out of bed Tuesday with some contracts exceeding losses of $5.00. Live cattle took a beating also, but not quite as dramatic. Hogs were mixed with about as many contracts closing positive as those closing negative. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Lower Live Equiv: $220.68 -$1.28* Hogs: Higher Futures: Mixed Lean Equiv: $105.36 -$0.58** *Based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. Index has been updated to depict recent changes in live cattle weights and grading percentages.) ** based on formula estimating lean hog equivalent of gross packer revenue. GENERAL COMMENTS: Feeder cattle came under severe pressure as there was a lack of bullish news. The focus turned to talk the Fed will likely raise interest rates before the end of the year. That will make it more expensive to purchase and own cattle until they are ready for the market. The other concern Tuesday was the strong possibility of a government shutdown next week. That could hinder the release of much-needed reports the agricultural industry relies on. The November feeder cattle contracts posted the largest one-day decline in the life of the contract. Further liquidation could follow Wednesday as long liquidation may continue. Live cattle showed triple-digit losses, falling below technical support. Feedlots may have a difficult time obtaining higher cash for cattle this week. Limited cattle trade developed Tuesday at $290 in Iowa. Boxed beef prices were lower with choice down $1.94 and select down $1.35.